Forex Trading Tools and Services

Commodities Silver

Silver Price Falls to Below $31 on Strong US Dollar and Fear of Trade War

  • BY
  • February 3, 2025
  • 0 Comments

Silver (XAG/USD) falls below $31.00 trading at $30.90 during early European hours, losing 1.30% as the US Dollar surges on back of new tariffs by Trump. The bull scenario remains intact above the 100-period EMA, but neutral RSI might suggest consolidation. The key support areas are at $30.60 and $30.40 with a psychological support at $30.00. On the upside, resistance can be seen at $31.72, while further resistance levels are near $31.90-$32.00. The market sentiment remains cautious due to global trade tensions. KEY LOOKOUTS • The initial resistance is at $31.72, with stiffer barriers around $31.90-$32.00, which coincides with the Bollinger Band’s upper limit and psychological levels. • Escalating US trade tensions and Trump’s tariff policies boost the US Dollar, which in turn exerts pressure on silver prices and market sentiment. • Silver is still above the 100-period EMA, but the neutral RSI indicates a sideways move, which may be a consolidation before the next significant move. • Silver’s main support is at $30.60, then at $30.40 and $30.00; any break below can lead to more downside momentum. Pressure below $31.00 as a stronger US Dollar, supported by Trump’s tariff measures, is weighing on silver (XAG/USD). Key supports remain at $30.60 and $30.40 while the resistance at $31.72 and at $31.90-$32.00 is a key. Even though it’s falling, silver remains above the 100-period EMA and remains in a bullish trajectory. However, the neutral RSI signals that it may have consolidation before taking off. The two factors still weighing on the metal in the short term include global trade tensions and strength of the USD. Silver (XAG/USD) is trading under $31.00 as the US Dollar gets a boost by Trump’s tariffs. Key support is at $30.60, while resistance is at $31.72. The neutral RSI makes it possible to consolidate before moving further. • XAG/USD is trading around $30.90, which has lost 1.30% as the US Dollar has gained strength. • New trade measures are fueling USD gains and adding selling pressure on silver. • Watch $30.60, $30.40, and the psychological $30.00 level for the potential downside. • A break higher can lead to prices toward $31.90-$32.00. • Silver manages a closure above the 100-period EMA following the recent decline. • The RSI remains neutral, which means range-bound action before moving out either way. • Focus is on the US Dollar strength or weakness on the basis of trade war concerns. Silver fell below the $31.00 level, trading around $30.90 as the US Dollar surged after President Trump introduced new tariffs. The growing fears of a global trade war have been adding selling pressure on silver despite its bullish technical outlook. The metal remains above the 100-period EMA, indicating underlying strength, but the neutral RSI signals possible consolidation before a clear directional move. Key support levels to watch are $30.60 and $30.40, with further downside risk if silver falls below the psychological $30.00 mark. XAG/USD Daily Price Chart Sources: TradingView Prepared by ELLYANA One strong resistance level is found at $31.72, with a much stronger resistance identified at the $31.90-$32.00 region at the upper Bollinger Band. Breaking levels above this strong resistance may confirm new highs for silver. However, market sentiment remains soft and bearish with respect to growing strength by the US Dollar and the state of the global economy. Traders will watch for new economic data releases and geopolitical news to drive silver’s next move forward. TECHNICAL ANALYSIS Its short-term technical picture remains positive in spite of recent weakness below $31.00, as it remains above the 100-period EMA in a very robust support area. The RSI is centered, which may hint at a pause before a larger move. For now, $30.60 is the initial support level; it coincides with the 100-period EMA. On the downside, $30.40 and then $30.00 are critical levels. On the positive side, resistance is observed at $31.72 and then at the area of the $31.90-$32.00 area, which coincides with the upper Bollinger Band. Breakout above this area would be a basis for further bullish pressure; a break below significant support will change the trend to bearish. FORECAST Silver (XAG/USD) has a bullish forecast as long as it stays above the 100-period EMA, that is serving as strong support at the moment. A rebound from the $30.60 level could push prices toward the immediate resistance at $31.72. If silver breaks above this, the next target lies in the $31.90-$32.00 region, which coincides with the upper Bollinger Band. A decisive breakout beyond $32.00 could open the door for further gains, potentially testing higher resistance levels in the coming sessions. Positive market sentiment or a weaker US Dollar could further fuel the rally. Despite overall bull structure, silver has downside risks if it fails to hold above key support at $30.60. A slide below this level could lead to more selling, but upside targets would be the next downside target at $30.40 and then the psychological $30.00 level. If the selling pressure increases, then silver may touch the $29.50 low of January 13. If the trade tensions or the US economic data strengthens the US dollar, then silver may experience more extended losses in the short term.

Read More
Commodities Gold

Gold Price Continues Rising, With Potential to Rise Further, Amid Economic Uncertainty and Declining US Bond Yields

  • BY
  • January 30, 2025
  • 0 Comments

Gold prices are trading near weekly highs above $2,765 as it continues its steady climb, driven by declining US bond yields and increasing concerns over the economic impact of former President Donald Trump’s proposed trade tariffs. While the hawkish pause by the Federal Reserve retains a semblance of stability in the US Dollar, sliding Treasury yields and expectations of future policy easing lend support to the non-yielding metal. Investors remain cautious as the market awaits key economic events, which include the European Central Bank (ECB) decision and the US Q4 GDP report. As for technicals, the cue of moving above the resistance zone of $2,772-$2,773 could provide room for a higher move toward $2,786 and even the record high of $2,790. However, the $2,745 support break below could attract some selling pressures, which is more likely at $2,730-$2,725. KEY LOOKOUTS • The Federal Reserve’s rate hold puts some immediate easing before policy but keeps the US Dollar resilient enough to cap the uptrend of the Gold. • Sliding US Treasury yields weaken the US Dollar, enhancing Gold’s appeal as a safe-haven asset amid economic uncertainty and inflation concerns. • Potential economic fallout from Trump’s tariff plans increases market volatility, driving safe-haven demand for Gold as investors assess global trade risks. • A breakout above $2,772-$2,773 could push Gold toward all-time highs, while a drop below $2,745 may trigger further downside. Gold prices continue upward, driven by a mix of economic uncertainty, sliding US bond yields, and safe-haven demand amid worries over Donald Trump’s trade policies. The Fed’s hawkish pause keeps the US Dollar relatively strong, thereby limiting immediate upside potential for gold, but future policy easing and lower interest rates continue to buoy bullish sentiment. Investors are careful to follow the key technical levels and, in the event of a breakdown above $2,772-$2,773, prices may move up towards all-time highs at $2,790. However, a fall below $2,745 could be seen carrying on further downward pressure. Therefore, the next price move will largely depend on the upcoming European Central Bank’s decisions and US economic releases. Gold prices remain strong amid economic uncertainty, sliding US bond yields, and trade concerns. A breakout above $2,772 could push prices higher, while support near $2,745 remains crucial. Investors await key economic data for further direction. • XAU/USD trades above $2,765, supported by declining US bond yields and safe-haven demand. • The Federal Reserve’s decision to hold interest rates steady keeps the US Dollar strong, limiting Gold’s upside potential. • Sliding US Treasury yields weaken the USD making Gold more attractive as a non-yielding asset. • Worries about an economic backlash from the proposed Trump tariffs boost safe-haven demand for Gold. • Breaking above $2,772-$2,773 may take Gold up to the $2,786-$2,790 area, very close to its all-time highs. • A slide below $2,745 may provide the catalyst for further declines, strong supportive below $2,725-$2,730. • Investors focus on the ECB policy decision and US Q4 GDP report for further market direction. Gold prices continue to trade near weekly highs, benefiting from sliding US bond yields and safe-haven demand amid growing economic uncertainty. The Federal Reserve’s hawkish pause has kept interest rates steady, supporting the US Dollar and limiting Gold’s gains. However, fears of the economic implications of Donald Trump’s trade tariffs and his calls for lower interest rates have further fueled expectations of future monetary easing, adding to Gold’s appeal. Declining US Treasury yields have also further weakened the USD, making the non-yielding yellow metal an attractive investment option. Investors are currently closely following the European Central Bank (ECB) policy decision and the release of US Q4 GDP later today for more market direction. XAU/USD Daily Chart TradingView Prepared by ELLYANA Gold is still strong at current levels near weekly highs while investors continue reacting to economic uncertainty, falling US bond yields, and trade policy concerns. The hawkish Federal Reserve stance has provided some support to the US Dollar. However, with expectations of further rate cuts and inflationary pressures, the upside momentum of Gold remains favored. A breakout above the $2,772-$2,773 resistance zone would push prices to $2,786 and test the all-time high of $2,790. However, if Gold is unable to sustain its gains, a break below $2,745 could fuel further declines. Support could then be found around $2,725-$2,730. Market participants are focusing on the major economic events, such as a policy decision by the European Central Bank and US PCE inflation data, which will define the next move for Gold. TECHNICAL ANALYSIS Gold (XAU/USD) remains bullish as it broke above its major resistance zone of $2,720-$2,725. The next major sell-off area is at $2,772-$2,773, and a successful breakout above that may send the prices to the range of $2,786-$2,790 and close to all-time highs. Positive oscillators on the daily chart support the continuation of the rally. On the downside, initial support is placed at $2,745 with stronger support placed in the area of $2,725-$2,730. A move below these will continue to see selling pressure accelerating, and eventually, prices are expected to plummet to $2,707 and then to $2,684. Market participants will be focused on market sentiment and key events in the economic calendar to gauge the next directional move in the price of Gold. FORECAST Gold prices are likely to move higher as bullish momentum is further supported by the decline in US bond yields, economic uncertainty, and safe-haven demand. A breakout above the key resistance at $2,772-$2,773 could open the door for an extended rally toward $2,786, followed by the all-time high near $2,790. If buying pressure continues, a further push beyond the $2,800 psychological level could trigger fresh bullish sentiment, reinforcing Gold’s well-established uptrend. Also, there is an expectation of further future monetary easing by the Federal Reserve and geopolitical tensions, which can be the reasons for further surge in Gold’s price in the future sessions. Yet, the bullish view cannot fully remove the vulnerability of Gold towards possible downside corrections. If the price fails to hold above $2,772, it might

Read More